Royal Express Pty Ltd (Receivers and Managers Appointed) (Administrator Appointed) v Huang, in the matter of Royal Express Pty Ltd (No 6) [2023] FCA 164

Royal Express Pty Ltd (Receivers and Managers Appointed) (Administrator Appointed) v Huang, in the matter of Royal Express Pty Ltd (No 6) [2023] FCA 164

The evidence established a good arguable case that Ms Cheng participated in and benefitted from a fraudulent scheme and breached directors’ duties; that she failed to disclose assets, and gave dishonest responses; and that there was a real risk of asset dissipation which justified granting interim freezing and ancillary disclosure orders.

Jurisdiction
Australia
Judgment Date
23 February 2023
Procedural Posture
Interlocutory Application / Interim Orders Granted on Application for Freezing Orders and Ancillary Relief
Outcome
Interim freezing order and ancillary disclosure orders made against Ms Cheng (ninth defendant); application adjourned for further hearing.
Legal Topics
['freezing Orders' 'ancillary Orders' 'asset Disclosure' 'fraud' 'breach of Director’s Duties' 'fiduciary Duties']
['corporate Insolvency' 'corporations Law' 'practice and Procedure'] ['freezing Orders' 'ancillary Orders' 'asset Disclosure' 'fraud' 'breach of Director’s Duties' 'fiduciary Duties']

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Procedural Posture

Interlocutory Application / Interim Orders Granted on Application for Freezing Orders and Ancillary Relief

Legal Issues

  1. 1 ['Whether there is a good arguable case that Ms Cheng contravened ss 181(2) and 182(2) of the Corporations Act 2001 (Cth) and was involved in a fraudulent scheme;' 'Whether there is a real risk of dissipation of assets justifying freezing and ancillary disclosure orders;' 'Whether the balance of convenience favours the granting of freezing and ancillary relief.']

Ratio Decidendi

The evidence established a good arguable case that Ms Cheng participated in and benefitted from a fraudulent scheme and breached directors’ duties; that she failed to disclose assets, and gave dishonest responses; and that there was a real risk of asset dissipation which justified granting interim freezing and ancillary disclosure orders.

Court Disposition

Interim freezing order and ancillary disclosure orders made against Ms Cheng (ninth defendant); application adjourned for further hearing.

Orders

  • ['Ms Cheng is restrained from dealing with or disposing of any of her assets in Australia or overseas, including specified real property and shareholdings.' 'Ms Cheng must provide information and documents regarding her worldwide assets and specific transactions, including property purchases, equity, share...